Monday, January 14, 2013

ND Oil Production Update - January 2013

The latest figures released by the North Dakota Industrial Commission's Oil and Gas Division show November oil production was 21,992,345 barrels or 733,078 barrels/day, down from October's record high of 23,225,571 barrels, or 749,212 barrels/day. The November numbers are preliminary.

Natural gas production for November was reported at 23,481,782 MCF, or 782,726 MCF/day, down from October's record of 24,731,342 MCF, or 797,785 MCF/day.

The total number of producing wells increased to a record high of 8,101, up 66 from 8,035 wells reported in October.

In his comments accompanying the release of today's figures, North Dakota Department of Mineral Resources Director Lynn Helms wrote...

"November saw a small decline in drilling with a very large decline in hydraulic fracturing resulting in a 2.2% decline in oil production rate from October. More operators are transitioning to higher efficiency rigs and implementing cost cutting measures at the end of their 2012 capital budgets, but the primary reason was winter storm Brutus. Williams County was impacted the most with November 10, 2012 being the snowiest day since 1901. The idle well count rose sharply indicating an estimated 410 wells waiting on fracturing services. Rapidly escalating well costs consumed capital spending budgets faster than many companies anticipated and uncertainty surrounding future federal policies on taxation and hydraulic fracturing impacted capital investment decisions. Over 95% of drilling still targets the Bakken and Three Forks formations."